UNIVERSITY fees were blamed yesterday for the low increase in the number of state sector pupils entering higher education.

As university performance indicators were released, teaching unions warned that people from poorer backgrounds were being put off from attending university - a situation which could be worsened if top-up fees are approved.

Margaret Hodge, Minister for Higher Education, said she wanted to see more progress by the best institutions following an overall increase of about one per cent in state sector students entering higher education between 1999 and 2000.

At Durham University, 62 per cent of students came from the state sector in 2000-2001, while at Newcastle University, the figure was 68 per cent, compared with a national average of 86 per cent.

At the former polytechnics, 97 per cent of students from Sunderland University came from state backgrounds, with 98 per cent at Teesside University, and 89 per cent at Northumbria University.

But drop-out rates were lowest at Newcastle and Durham - both five per cent - compared with 14 per cent at Sunderland, ten per cent at Northumbria and 12 per cent at Teesside. The national average was ten per cent.

Sally Hunt, general secretary for the Association of University Teachers, said students from poorer families were being put off by tuition fees.

Durham and Newcastle defended their record for attracting state students and predicted that figures would increase in future.

Professor Graham Henderson, Teesside University's vice-chancellor designate, said: "The data shows we are playing a major role in widening participation and providing opportunities for a wider range of people than many of the traditional universities."

A spokeswoman for Northumbria University said: "Northumbria University is doing well in continuing to attract people from areas of traditional low participation and supporting them through their studies to ensure they successfully complete their programmes."